Italy’s oil and gas company Eni and gas grid operator Snam have entered a partnership to jointly manage their gas pipeline assets connecting Algeria to Italy and to study how to develop the network to support energy transition and promote the use of hydrogen.
This announcement follows the finalisation of a €405m deal, initially agreed in November 2021, under which Snam acquired a stake in Eni’s assets in various companies managing the gas networks between North Africa and Italy. Snam notably bought 49.9% of the equity interests held by Eni in the companies operating both onshore gas pipelines running from the Algeria and Tunisia borders to the Tunisian coast (TTPC gas pipeline system) and the offshore gas pipelines connecting Tunisia to Italy (TMPC gas pipeline system).
Due to the sharp decrease of gas supplies from Russia, Algeria became Italy’s biggest gas supplier in 2022, making the gas pipeline network between the two countries a strategic infrastructure for Italy’s energy security. In September 2022 Algeria agreed increase supply and to deliver a total of 25 bcm of natural gas to Italy in 2022.